Innovation

Patently False

Cool News of the Day Little did Raymond E. Stauffer realize that all hell would break loose when he noticed an expired patent number on a Brooks Brothers bowtie, reports Dionne Searcey in the Wall Street Journal (9/1/10). Raymond is a patent lawyer and he knows an outdated patent number when he sees one -- in the case of the Brooks Brothers adjustable bowtie, the patent had expired in the 1950s. It's illegal to use old patent numbers mainly because it's considered anti-competitive, given that the practice effectively discourages others from entering a market.

The fine is nominal, just $500 per violation. But after Raymond filed his bowtie suit against Brooks Brothers, a separate ruling found that companies are liable for $500 per item -- in other words, $500 for each and every individual Brooks Brothers bowtie (there are 120 different ties) carrying a false patent. This would add up to huge numbers not only for Brooks Brothers, but also companies including Procter & Gamble, Walmart, Cisco Systems, Merck and 3M, all of which apparently have products on the market with expired patent numbers on them.

Some defendants claim it's just an oversight: "A lot of these products always have patent numbers on them, and it never occurred to anyone to take them off," says an attorney representing Walmart. Others are dismissive: "These cases have forced companies to spend time, money and resources investigating claims where there really isn't any injury to anybody," says another defending attorney. But Daniel Ravicher of the Public Patent Foundation feels quite differently about using expired patent numbers. "It chills competition, it misleads the public and takes away from the credit patent holders deserve," he says.

Innovation Machines

Vijay Govindarajan and Chris Trimble think that 3M and Google have it all wrong when it comes to innovation, reports the Economist (8/28/10). Vijay and Chris are Tuck School professors and co-authors of The Other Side of Innovation: Solving The Execution Challenge. They think 3M and Google, among others, make a mistake by expecting their workers to spend a certain percentage of their time on innovation. At 3M it's 15 percent and at Google it's 20 percent. They argue that this "let-them-loose approach spreads resources thinly and indiscriminately."

The result, they say, is "a thousand small initiatives rather than focusing on a few big problems." What's more, managers must "spend weeks sorting through the chaff to find a few grains of wheat." The authors also say it's a mistake to offer employees bonuses for fixing inefficiencies, arguing that the results are typically incremental, and seldom breakthrough. And they are against the independent "skunkworks" approach because "it ignores the basic reason for working for a big company in the first place -- to use its superior resources to supercharge what you are doing."

Their solution is to build what they call "innovation machines" that are integrated with the rest of the company and are "held accountable for their ability to learn from mistakes rather than for their ability to hit their budgets." They cite BMW for having thrown together its battery and brakes specialists to design brakes for hybrids. Allstate Insurance, meanwhile, had its marketers and risk-adjusters collaborate to create "industry-changing ideas such as accident forgiveness." In short, "students of innovation must pay more attention to big companies" because "they have the muscle to chase big prizes" and the capacity "to conquer new territories while continuing to cultivate old ones."

Espresso Bookistas

"Even as people embrace Kindles and other gadgets for reading, bookstores are finding a market for titles printed in small custom batches," reports Dana Mattioli in the Wall Street Journal (8/27/10). "Of course the fun is being able to watch their book being made," says Barry Bechta of Oscar's Art Books in Vancouver, which "has sold about 1,500 digitally printed books since it bought a special printer in March." Barry says that people like to gather around and watch the books as they are printed in-store.

For Oscar's, and other smaller independent bookstores, the ability to print books on-demand provides a way to compete against the chains with bigger selections. Oscar's uses the Espresso Book Machine, made by On Demand Books, which "partners with Google Inc. to get access to older so-called 'public domain' titles, and with Ingram Content Group Inc's Lightning Source for in-copyright titles." The machine costs more than $100,000 and Google collects a $2 licensing fee with each book, while the fee varies with Lightning Source.

Because of the costs involved, profits are lower than with traditional books, but retailers feel it's worth it "because the store is getting a sale it otherwise wouldn't." The selection of current titles isn't exactly comprehensive, either, but the on-demand demand is good and growing: "About four percent of books are currently printed digitally, but that's expected to grow to 15 percent by 2015," according to Interquest. Some book publishers are also looking into on-demand printing, but neither Barnes & Noble nor Borders has installed printers in their stores -- although Barnes does "about $20 million in annual sales for on-demand printing."

Little Richard

He's 77 years old now and the song that made him famous turns 55 next month, but Little Richard's influence still runs strong, reports Marc Myers in the Wall Street Journal (8/10/10). "I was like the rappers today, creating dirty words to blues songs on the spot," says Richard. "One of them was called Tutti Fruitti." (video) Indeed it was, and even though the original lyrics were cleaned up, teens at the time knew exactly what he meant when he sang "about a girl named Sue who knows just what to do." Woooooo.

Released in January, 1956, Tutti Frutti peaked at No. 17. It was followed by Long Tall Sally (No. 6), and Slippin' and Slidin', Rip It Up and Ready Teddy -- Little Richard recorded "15 Billboard Top 100 hits by 1958. He also made three film appearances, including The Girl Can't Help It, starring Jayne Mansfield (video). "I had started standing at the keyboard so I could do my stage routine without having to get up," says Richard. "I also began putting my leg up on the piano, like Otis Turner." (video)

Richard was already dressing flamboyantly and wearing his hair in a pompadour, a style he picked up from Esquerita, the R&B singer who also taught him how to play boogie-woogie piano. "I wore makeup and wild outfits to keep white people from focusing on me as some kind of a ... threat," says Richard. "I knew that if I looked crazy, not cool, I wouldn't be seen that way. And it worked. People focused on the music." The affected include Elvis, the Beatles, Stones, Jimi Hendrix and Michael Jackson. "I should be better recognized today for sure," says Richard. "I am the beginning. I am the originator."

Nordstrom's Window

A relatively simple change in merchandising strategy is yielding big benefits for Nordstrom, reports Stephanie Clifford in the New York Times (8/24/10). The change, implemented 11 months ago, integrates in-store and at-warehouse inventory, which vastly increases the odds that shoppers will find what they're looking for. Not only that, but shoppers can either order the item for home delivery or reserve it for same-day pickup at a nearby store. The result, according to Jamie Nordstrom, president of Nordstrom Direct, is "some pretty meaningful results."

Specifically, "same-store sales increased by an average of eight percent," versus an average decline of 11.9 percent prior to the new approach. Nordstrom does not attribute the entire turnaround to the strategy, but in any case the retailer now boasts "one of the best improvements in same-store sales over the last year" versus its competitors. Jamie says Nordstrom implemented the new policy because it was clear its customers wanted it.

As he explains: "It was the first thing we did, because the No. 1 call we got at our call center was, 'Hey, I'm looking at this item online, can I look at it at my store?'" The strategy meanwhile increases the number of shoppers who shop in more than one way, who "spend four times, on average what a one-source shopper does." For Nordstrom, fewer leftovers also means fewer markdowns, and greater profits. "We can sell more without having to buy more inventory," says Jamie, "That plays through to margins and, ultimately, earnings."

The Daily Grommet

Jules Pieri and Joanne Domeniconi are creating a "link between buyers and inventors" that they call "citizen commerce," reports Amy Wallace in the New York Times (8/8/10). Their website, The Daily Grommet, is designed "to enable consumers to find products that support their values" and "patronize innovative companies that its team believes will treat customers well." The Daily Grommet's staff does its own research to find such products "and features only products and companies it has battle tested."

Featured products have included "a hands-free flashlight, a newfangled pogo stick and an embroidered Peruvian belt." The criteria for selection includes "well-made products and impeccable service," from "nice companies. If those products preserve a craft or protect the environment ... so much the better." Jules says there's "a burning hunger for real leadership and access to authentic experiences and trustworthy people."

"We are seeing an unprecedented democratization of innovation, but existing retail and distribution systems don't give everyday people access to the fruits of that trend," says Jules, who also notes "that new, cheaper prototyping tools have made it easier to become an inventor." The Daily Grommet is based in Lexington, Massachusetts and "promises buyer satisfaction and a moneyback guarantee." Its endorsements can't be bought, and the site carries no advertising, but the Grommet makes its money by taking "a cut of the revenue" on all sales.

Flower Power

"I'm going to be in jail for committing tomato Ponzi," says Zachary Lippman in a New York Times piece by Robin Finn (8/22/10). Zach probably won't be going to jail, but he may be laughing all the way to the bank once his research into tomato genetics bears, um, fruit. Zach and his team at the Cold Spring Harbor Laboratory have figured out how to "make a tomato plant increase its yield by half and simultaneously sweeten its produce."

But they're doing it not with "genetically modified tricks" but rather as Mother Nature intended. The process involves "manipulating a single copy of a mutant gene ... known as S.F.T. (single flower truss)." Called the "flower power gene" it "tells plants when and how many flowers to generate." The hope is that one day any gardener with a packet of Zach's superseeds could produce a bumper crop, not to mention the commercial potential of sweeter, more plentiful tomatoes.

There's also the possibility of manipulating melons and soybeans in similar fashion. "If this technology can be transferred to other species it could be quite valuable, and that's what Zach is working on now," says Bruce Stillman, president of Cold Spring Harbor Laboratory. Zach's fellow scientists may not be so impressed though; a group of them recently greeted him with shouts of, "Hey Zach, nice tomatoes!" But Zach is undaunted: "If I had a million dollars, I'd start a seed company tomorrow," he says. A patent on his mutant seeds is pending.

Personal Watermelons

The nostalgia some Arkansans have for big, heavy, oblong watermelons isn't shared by folks elsewhere around the country, reports Kim Severson in the New York Times (8/18/10). "When I was growing up, the guys were always talking big melons," says Lloyd Bright, who lives in Hope, Arkansas (which, in itself, may explain the comment). He also holds the record for having grown the world's largest watermelon, weighing in at 268 pounds and 8 ounces (image). The trend, however, is toward smaller, rounder watermelons -- without seeds, of course (only about 20 percent of melons sold in the US today have seeds).

Purists think that these "personal watermelons" lack the personality, character and flavor of old-fashioned melons. But for farmers and consumers, the smaller melons make more sense. "You can handle them better and stack them better," says Ernest Brown, a farmer. In addition, the big watermelons might yield just 40,000 pounds per acre, while the personal size might yield up to 80,000 pounds. Others note that the growing process for traditional watermelons is "chemical heavy."

It is also wasteful, as it involves "culling plenty of healthy, unripe fruit to let the vine turn its attention to the most promising watermelon." And as far as consumers are concerned, the smaller melons are more practical, as well: "Most people, particularly urban people, would rather have a small one," says Dr. Terry Kirkpatrick of the University of Arkansas. "With the big ones, you fill up all your Tupperware containers and you're still not done." Terry still prefers the old-fashioned varieties, though: "I grew up in the country, and the ability to spit seeds is something that is an art," he says. "You just have to spit seeds once in a while."

Zero Waste

Even mighty Walmart can't get a handle on "zero waste" when it comes to the apparel it sells, reports Stephanie Rosenbloom in the New York Times (8/18/10). It's an issue since "about 15 to 20 percent of the fabric used to produce clothing winds up in landfills because it's cheaper to dump the scraps than to recycle them." Where Walmart has used its clout to support compact fluorescents and concentrated detergents, it apparently hasn't yet exerted as much muscle where clothing is concerned.

Manufacturers face other obstacles, as a zero-waste goal likely would involve "re-engineering the supply line," and "overhauling a factory is obviously expensive." But that's not stopping zero-waste zealots like Timo Rissanen, co-author of "Shaping Sustainable Fashion," who says he is re-learning how to design, scrap-free. One technique involves creating a pattern that fits together like a jigsaw puzzle. Another avoids cutting the fabric altogether, and instead drapes it over a mannequin to be tucked and sewn.

Parsons the New School for Design is also now offering a course in zero waste in which students will be challenged "to figure out how to create zero-waste jeans without compromising style." This includes not only fabric waste, but also "the dyes added only to be washed out again, the energy used to transport the denim all over the world, the packaging, and the gallons of water used by consumers to clean the jeans." The winning design will be manufactured by Loomstate, an organic fashion label, and sold at Barneys New York next spring.

Bamboo Bikes

"There's something going on with bamboo bikes," says Jay Townley in a New York Times piece by Malia Wollan (8/12/10). "They're catching on with urban and commuting cyclists," adds Jay, a market researcher. Bamboo bikes are still a relative rarity, but some cyclists like both the bike's "eco-credibility" as well as their distinctive look. Unlike steel, bamboo grows like a weed and can be composted. But interestingly, it has a "strength-to-weight ratio similar to that of steel."

Some cyclists are willing to pay dearly for this: "Nick Frey, owner of Boo Bicycles, builds and sells high-performance bamboo-frame bicycles ... ranging from $3,000 for just the frame to $10,000 for a tricked-out racer." Ironically, super-cheap bamboo bikes -- selling for about $60 each -- will soon be built in Ghana, as part of the Bamboo Bike Project sponsored by Columbia University. Other enthusiasts are taking a do-it-yourself approach, using one of the "step-by-step, how-to-build-a-bamboo-bike guides on the Instructables web site."

Marty Odlin of the Bamboo Bike Studio in (where else) Brooklyn, offers bamboo bike-building workshops. Marty and his students harvest their own bamboo "from patches on the property of landowners who eagerly granted permission to anyone willing to assist in taming the plant ... Because of high demand, the studio now orders bulk shipments of bamboo from Mexico." He also has created a "mail-order, do-it-yourself bamboo bike kit." Other bamboo bike makers include Signature Cycles, Renovo Design, Panda Bicycles, Organic Bikes and Calfee Design.

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